If you’ve been to San Diego you know what a wonderful place it truly is, and how much it has to offer. Both full-time residents and part-timers love to live here, and it continues to be one of the top vacation destinations in the country. San Diego is also on the top ten list for international buyers. If you haven’t been to San Diego and wonder what makes it so special, and a great place to invest in property…here are my top 4 reasons:

1. Appreciation Factor. The San Diego real estate market is a special one. Sure, it has ups and downs like any market, but the location and weather make it a desirable place to own property year-round. The proximity to the coast will always be a strong factor. If you plan to hold onto the property over time you will find your investment is sound, and you will profit. This is prime coastal Southern California real estate territory.

2.  Rentability. If you are planning on renting out your property you are in luck. Rents have risen over the last few years, inventory is scarce, and San Diego rental property is always in high demand. If you purchase property along the coast you may be able to rent out your property as a vacation rental, which can be a strong source of income. High end rental properties can even be a sole source of income in some situations. In the last several years I have seen rental properties rent very quickly, with multiple applications.

3.  The Weather! Nowhere else has weather like San Diego. With an average year-round temperature of 72, San Diego is the quintessential vacation destination. Many “snowbirds” come to San Diego in the winter to escape the cold elsewhere, and those living in places that get a tad too warm in the summer, like Arizona and Nevada, love to call San Diego home during summer months.

4. So Much to Offer. San Diego has the best of everything: theater, music, dining, museums, culture, parks, sports and sports venues, shopping, and beaches. There is something for everyone in San Diego, and it will continue to be a vacation destination. In a word, it is paradise…wouldn’t you love to have a home in paradise?

No matter who you are or how you like to relax and play, you will find it in San Diego. If you are looking for investment property this is a great place, whether your goal is to have a home to escape to, or one that will be a source of income. If you have questions about investment property in San Diego County, please feel free to contact me. There are properties and locations for so many types of investments, and I will be happy to assist you in finding the right one.

Many real estate agents, mortgage professionals and economists have been saying it: “now is a great time to buy.” In fact, those cries have been echoed for the last year or so. Interestingly, there ARE many ready buyers out there, but inventory is so low and it is very difficult to be the lucky one whose offer is chosen, as many homes that are listed on the market obtain multiple offers, often in the first day or two.

So what makes now such a great time to buy real estate? There are 3 main reasons:

1.  (Still) historically low interest rates. The interest rates are still at unprecedented lows. Part of this reason is because there is little inventory in most markets. As prices climb, inventory will rise (because sellers will see a good reason to finally sell again) and in turn interest rates will likely rise. It’s a Catch-22, but if you want the best rates, the end of a long downturn is a great time to take advantage.

2.  Prices are rising in many markets. Many buyers have been waiting, some for a long time, until the market “bottomed out.” Well folks, we have reached that point and are now on the upswing. Prices in north county have risen, homes are receiving multiple offers, and the condo market is officially a seller’s market. Single family homes are soon to reach that level as well. If you are a buyer who has been “on the fence,” now is definitely the time to climb off and start looking, lest you find yourself facing higher prices and more competition as we head toward the Spring/Summer selling season.

3. Distressed inventory is down. Foreclosures have slackened off since the start of the summer, mostly in part to lenders embracing short sales and other programs, like loan modifications or sales to third party investors that help people stay in their homes. With less distressed inventory prices can continue to rise at a steady, “normal” pace. Note that even if you live in an area where there are still a lot of short sales, the jump in averages prices in those neighborhoods will cause lenders who hold paper on the distressed properties to seek prices that are more in line with the comparable sold properties, and since many lenders are trying to close short sales quicker and are being stricter with prices they will accept, it is likely such sales will not have a substantial effect on comparable properties.

4.  Rents continue to rise and rentals are harder to find – great for investors, not so great for those seeking to rent. Rents have risen over the past year and are at a 10 year high, according to research reported in the Wall Street Journal. One study by Trulia even found that it is cheaper to own rather than rent in many markets. Not to mention the rental market is so hot, that it requires much luck to even find a rental and be chosen as a renter, since there is so much competition. I have had renters call on all my listings over the past year, asking if the sellers were willing to rent instead of sell – people are desperate. One of my investors just leased out a newly purchased property – the same floorplan I sold last year to a different investor – and he was able to obtain a monthly rent almost $100 higher per month than the first investor.

5. Low inventory. Low inventory in most markets means much greater competition amongst buyers. How, you say, is this a reason to buy now? Well, since competition is so high and prices are rising, if you are lucky to be the chosen buyer on a property you will likely end up paying less than when there is more inventory. There is only less than a three month supply of inventory on the market now in San Diego. If the many buyers out there looking cannot find a home to purchase now, and hold off until there is more inventory (usually after the holidays), there will also be more competition, as you will also get the buyers at that time of year who want to make a move after school gets out for the summer. Also, you will likely get a lower interest rate if you buy now rather than down the road, as many economists predict interest rate increases as inventory rises.

Do you need a few more reasons? How about this: housing statistics have been and continue to be on the rise. Building statistics are up in many areas, and many markets are becoming seller’s markets. So remember that “now is truly a great time to buy” may sound like an old cliche, but truly makes sense right now. If you are serious about buying now, make sure you understand the importance of writing a strong offer – click here for some great tips. Happy house hunting!

If I had a dollar for every time someone asked me how the housing market is doing, I would be a very happy lady. Right now there are a lot of stories and speculation out there as to the status of the housing market. There is definitely a lot of positive news, and that seems to be the majority. But nevertheless, when I report on it I still get comments from people claiming that their area is still hard hit, rife with foreclosures, etc. Can we answer the question, “how is the market?” in general terms?

The answer is “not really.” Although most areas of the country are in a better place than they were say, two years ago, the answer to the housing market status question is still area-specific. Some areas – like many parts of California and Arizona (due in part to inventory shortages) and Idaho – are experiencing positive signs, like increased sales, multiple offer situations, lower foreclosure numbers, and construction booms. Yet other areas, such as New Jersey, have thousands of empty homes that have not hit the market yet (New Jersey has one of the highest “shadow inventory” rates in the country – the  number of homes owned by lenders but not yet active on the resale market).

So in some areas of the country we are seeing housing improvements on different levels, while in other areas we are not seeing such signs. Therefore, looking at housing from a national perspective really does not provide an adequate picture as to what is going on in your area. As I always say, it is more important to focus on your specific area and ignore the media reports on housing (unless they are hyper-local reports). So let’s take a look at what’s going on locally.

The California housing market improved 8.5% in sales in June from the same time last year. Prices also increased 8.1% from the same time last year, according to the California Association of Realtors (CAR). Low inventory rates in many areas, as well as low interest rates and ready buyers, combined to jack up the competition and bring more offers and more closed escrows.

Here in San Diego county, the median price for all North County homes – attached and detached – increased $13,000 from May to June, 2012. Wow! That is a big increase in one month. Among detached homes, North County experienced the highest median price recorded for single family detached homes since 2010 (a 4.68% increase in price from May to June of this year). Attached homes in North County also increased – 1.97% from May to June of this year. [Data complied by NSDCAR via HomeDex]

The number of sold homes in North County increased for the 5th month in a row, while the number of single family detached home listings decreased from May to June by 6.15%, with a fall of over 35% from June 2011. Normally the busiest selling time of the year, this Spring and Summer have definitely been different in the local housing market. The lack of inventory and the demand for such continues to strengthen the local market in terms of price and sales.

Outside of North County (the rest of San Diego county), detached home prices increased 0.87% from May to June, and attached home prices remained steady from May to June (at $210,000).

Locally, we are definitely seeing a housing market rebound. For those who have to purchase it can be trying, due to the low inventory and fierce competition, including investor buyers who often can present cash offers. What we need locally is more inventory. Although prices are down from the heyday of the market, it still can be a great time for sellers who need to sell or have equity in their homes.

When focusing on the housing market and whether it is truly “recovering,” my advice is to ignore the national media and look at housing reports in your area, or the area in which you would like to purchase. If you would like a copy of the HomeDex report, please send an email to me at Rachel@LaMarRealEstate.org, and I will be happy to send it to you. I am also happy to provide a thorough market analysis of any San Diego neighborhood.

Photos courtesy of Dreamstime

There is a strange phenomenon occurring in San Diego this Spring season – there are less homes for sale than anticipated. It is not uncommon for buyers to find themselves in multiple offer situations, being outbid and outshone by others, including cash investors. Will we see more inventory as we head into summer, and what is keeping sellers from selling? Let’s take a look at some of the possibilities.

1. Negative Equity Rising. According to an article in the Wall Street Journal, economists believe that as negative equity rises, people are less likely to list their homes because more foreclosures become a possibility, meaning property values go down. If sellers cannot get more for their homes, they will be unable to have the money needed for downpayments to purchase new homes, and to pay all the fees associated with selling. Thus, many are waiting for the market to go up before selling. Some of those who have to sell end up short selling their homes, which does not help neighborhood market values.

2. Fear. Many people are still afraid that the economy has not healed, and that the housing market has still not hit the “bottom.” To this I reiterate how important it is to focus on your own specific housing market, not the national reports. For instance, here in San Diego many communities are currently “seller’s markets” (for the first time in a long time) when it comes to condos, townhomes and attached homes. Multiple offer situations are common, and prices are rising. Many buyers are frustrated – they are making offers and are qualified for loans, but they are outbid. So, it is important to speak with a knowledgeable area agent to understand your specific market.

3. Election? Being an election year, many people feel that there will be changes within the economy and housing market if a new administration is elected, and those changes create fear and uncertainty. Some sellers choose to wait and see the results, so they can try to analyze where the market may go from that point. Again, it is imperative to really understand your local market, and not simply wait to see what might happen in the future. If you are in a market that has risen, and there is great demand there, you may be in the driver’s seat as a seller.

4. Investors in the market. There are many investors out there snatching up properties, especially those in the under-$300,000 price range. A large percentage of these investors pay cash, and their offers outshine those from buyers who need to get a loan, as they are easier to close. It is not uncommon to see buyers being outbid by these investors, and there is a lot of frustration amongst many buyers today. The only thing a buyer can do is be as well qualified as possible, and appeal to the sellers via a handwritten letter, making the sale feel more personal. This won’t always help, but I have my buyers write them, as it makes things more personal.

Most importantly, buyers and sellers need to understand the following: if somehow we knew that the market was going to improve from here on out, that improvement will be gradual – not a crazy spike like in the early 2000′s. Annual price increases of several percentage points a year will be likely. Sellers need to figure out the difference in waiting to make a few thousand dollars, compared to paying the mortgage, insurance, taxes and maintenance over that period of time. Buyers need to consider that when the market starts to correct, it is likely that interest rates will rise as well – so they could potentially be hit with higher prices and rates. There are buyers out there ready and waiting for homes to be listed, so speak with a qualified agent about your options if you are thinking of selling your home.

Photos courtesy of Dreamstime

I have a new listing in the wonderful community of Del Sur in San Diego, and this is one beautiful home! It is being offered at $535,000.

This 4 bedroom, 3 bathroom home offers 2000 square feet, plus a fabulous entry entertainment/den with fireplace, that has been enclosed with windows (it was built as an indoor/outdoor room).

Filled with light, this home has numerous upgrades and features, including green features like solar panels and a tankless water heater.

Other features include:

• Granite counters

• Stainless steel appliances, 6 burner stove, range hood and upgraded cabinetry

• Wide plank hardwood flooring downstairs and in master

• Custom paint and designer carpeting

• Two fireplaces, upgraded fixtures and fans

• Quaint landscaped yard and patio area off living room

• Upstairs laundry room with sink

Del Sur is a master planned community situated just a few miles inland from Del Mar, and bordering Rancho Santa Fe. Surrounded by hills and miles of trails, Del Sur has so much to offer., including multiple pools and parks/tot lots, a gorgeous “Ranch House” community clubhouse, and prestigious Poway schools.

This home has been impeccably maintained and is in move-in condition. It is being sold as a short sale.

Please contact me to schedule a showing, or visit the open house this Sunday from 1:00-4:00. 760-310-9466.

MLS number 120029250. For virtual tour visit http://www.flashitfirst.com/bt/8385_Reagan_Glen.html

If you are a buyer in California, especially in the San Diego area, you likely have noticed that many properties are going quickly once they are listed, oftentimes with multiple offers. It is a great time to buy, and and also can be a terrific time to sell if you have an experienced real estate agent on your side. Check out this interesting infographic from the California Association of Realtors:

There has been a great deal of real estate news making headlines lately, so if you want the latest scoop here you go:

1.  Bank of America is about to launch deed for lease program. After much controversy over this type of program, it seems B of A is going to jump into the deed for lease program arena. The program will target underwater homeowners, who are in danger of foreclosure, and will provide an alternative that allows them to stay in their homes: the homeowner turns over the deed to the property, and in turn gets to rent the property back as a tenant, at current market rates. The former homeowners would be given one year leases with options to renew. There are many questions as to whether this program will work, and whether it is good for the housing market. We will just have to wait and see. Stay tuned for more on this topic.

2.  Bank of America is offering principal reductions up to $100,000. Sound too good to be true? It may well be – the requirements are very specific and do not apply to Fannie and Freddie loans. Your loan has to have originated with Countrywide AND you have to have been 60 days delinquent as of January 31, 2012. For more information click here.

3.  New study finds buying is cheaper than renting in 98/100 major U.S. cities. According to a study by Trulia, it is more cost-effective to buy rather than rent in many places. This is due mostly in part to the rising rental rates and the flat housing prices – combine that with the extremely low interest rates which make now a great time to buy. Buying rather than renting can also avoid other potential headaches, such as finding properties to rent (a big problem in my area), or the surprise of a landlord facing foreclosure. For more details on the report click here.

4.  Best February for home sales in 5 years. Yes, last month was the best February for resale homes of the last 5, according to the National Association of Realtors. Combined with a nice sale number in January, the year seems to be off to the best start since 2007. Hopefully this good news will continue.

5. Assets of 5 California mortgage companies are frozen by federal court. This came after investigations were opened against five California mortgage companies for fraud in scamming homeowners facing foreclosure. All the companies were owned by Sameer Lakhany, who apparently charged customers up to $10,000 for legal advice and forensic audits, encouraging them to join lawsuits against their lenders for fraud.

6.  The blame game – are you surprised? The FHFA (Federal Housing Finance Agency) is claiming that the lengthy foreclosure timelines are the fault of state laws. These laws have been enacted by different states in order to protect homeowners, but the FHFA claims they are instead delaying foreclosures, which hurts neighborhoods and the homeowners in the long run. What do you think?

Thank you to Roxanne Kelemen, with Advantage Title for the above information!

The numbers are in! Below are the home sale statistics for San Diego in 2011. If you would like a .pdf copy of the entire chart, please email me at Rachel@LaMarRealEstate.org and I will be happy to send them to you. Thank you to title rep extraordinaire, Roxanne Kelemen with Advantage Title for this data.

Once in a while a property comes along that is very special…that time has come. Welcome to 4029 Sunnyhill Drive in Carlsbad – a wonderful home on a large half-acre, unobstructed ocean view lot, just moments to the beach, shopping and dining.

Highlights:

• Ocean views! Expanded view potential with second story addition
• Updated kitchen with granite counters, stainless appliances
• Detached guest house and office, plus 3 greenhouses
• Outdoor kitchen with tandoori and pizza ovens, BBQ, kegerator
• Gated property
• Ranch style, single story home

• Large, private lot 23000 square foot lot
• 2565 square feet of living space (guest house and office not included in square footage)
• Resort-like pool and spa, recently resurfaced
• Basketball court, tennis backboard, large grassy area
• Mature landscaping with multiple fruit trees
• Moments to beach, shopping, dining, Carlsbad Village, schools
• No HOA or mello roos
• Carlsbad schools
• MLS number 120000115

To view this property or get more information please contact Rachel LaMar, Broker, at 760-310-9466 or Rachel@LaMarRealEstate.org. Visit property website for photos, information. CA DRE license 01399682. Property MLS number 120000115.